Without much Litecoin news to pull it in either direction, “animal spirits” took LTC prices on a rollercoaster ride. There was a sharp dip on Tuesday morning, which seemed natural following the steep climb on Monday and Friday.
What happens now?
Well, the movement of Litecoin certainly depends on its more illustrious counterpart: Bitcoin. The relationship between the two currencies is like that of silver and gold, respectively.
Litecoin is busy trying to develop all these commercial uses, while Bitcoin is making the big ideological pitch to investors.
We wrote last week that LTC was due for a rise because it had stagnated during Bitcoin’s month-long ascent from $2,946.62 to $5,656.70. The concentration in Bitcoin—denoted by BTC Dominance—had to unravel sooner or later, we predicted.
Sure enough, Litecoin prices lifted off, first rising from $32.03 to the $50.00 level. There was a lot of indecisive behavior at the $50.00 level, but then investors found a strong line of support.
LTC soared past $60.00 at the end of last week, even daring to touch $70.09 at one point on the weekend. Those gains were pared back on Monday night and Tuesday morning, but does that mean that investors are “bearish” on Litecoin?
Considering the broader context of what’s happened in the last two weeks, that seems unlikely.
What seems more likely is that investors are trend-surfing various currencies in order to exploit brief jumps in their price. This means that prices will advance in a “two steps forward, one step back” routine.
As such, investors should not worry about the Litecoin to USD exchange rate falling 4.89% to $60.94. The currency is still trading 19% above last week’s price.
Daily Litecoin Chart:
Litecoin was flirting with $90.00 before China banned cryptocurrency trading last month. Since we’ve seen South Korean and U.S. volumes replace the missing volume from those Chinese exchanges, we believe that LTC is headed back to that level. Beyond the $90.00 threshold, we maintain our $200.00 Litecoin price forecast for 2018.